how-does-indeed-make-money

How Does Indeed Make Money? The Indeed Business Model In A Nutshell

Indeed is a job listing employment website co-headquartered in Austin, Texas, founded in 2004 by Paul Forster and Rony Kahan. Indeed makes money via sponsored posts, Indeed Resume (Standard and Professional plan), targeted ads, and the Indeed Hiring Platform.

Origin Story

Indeed is a job listing employment website co-headquartered in Austin, Texas, and Stamford, Connecticut.

The company was founded in 2004 by Paul Forster and Rony Kahan. In 2005, the pair released a beta version of the platform and described it as a pay-per-click (PPC) job advertising network. Indeed also tracks the popularity of words over time to identify new trends in the job market.

In recent years, the company has made several acquisitions. In 2019 it acquired Syft – a major recruitment platform in the UK for the industrial, event, and hospitality sectors. In the same year, Indeed also acquired the automated job advertisement platform ClickIQ.

Indeed is now the most popular job website in the world, attracting 250 million unique monthly visitors with 10 new jobs posted every second.

Indeed revenue generation

The Indeed platform of free of charge for job searchers, so the company instead charges businesses for the privilege of listing vacant positions.

With so many jobs posted daily, an individual listing can quickly become buried among thousands of similar search results. Therefore, Indeed allows recruiters to increase their visibility via several paid tools.

We will have a look at these tools and some other revenue streams below.

Firstly, recruiters can purchase sponsored job postings that appear at the side or top of search results. These postings are funded by a PPC budget allowing the business to target certain keywords.

Indeed charge for keyword targeting based on how popular it is as a search term. Ads can be run for a minimum of $5 per day, with no upper limit on how much an employer can spend.

Indeed Resume

Job seekers can upload their résumé to Indeed where it can be found by recruitment staff.

However, Indeed charge a monthly subscription fee for the privilege. There are two plans:

  • Standard – for businesses making a few hires, Indeed charges $100/month for 30 contacts. Here, contacts are defined as interactions between an employer and a job seeker.
  • Professional – for larger businesses who require more interaction, Indeed charges $250/month for 100 contacts. There are also additional tools such as bulk messaging and Indeed’s Hiring Insights analytics.

Targeted ads

In addition to sponsored ads, employers can also use targeted ads that can be displayed across various parts of the Indeed website.

While Indeed does not publicly disclose the prices for targeted ads, it is likely to be based on the location the ad occupies and how long it runs for.

Indeed Hiring Platform

Indeed also offer automated recruitment technology, allowing businesses to conduct virtual hiring events to fill multiple positions. Interviewees satisfying the relevant criteria are invited to attend events, which Indeed argues streamlines the entire recruitment process.

Again, prices for this holistic service are undisclosed. But they are based on the geographic location, job demand, and the number of job seekers targeted. There is also likely to be a one-time fee for hosting the event itself.

Key takeaways:

  • Indeed is a job listing employment website founded by Paul Forster and Rony Kahan. The platform borrows aspects of Google PPC advertising and search-based ad placement.
  • Indeed is free to use for job seekers. Instead, revenue generation is primarily focused on an increasing job listing visibility for employers.
  • Indeed also offer a range of ancillary services. Indeed Resume allows businesses to access a database of job seeker résumés. The Indeed Hiring Platform gives employers an automated, all-in-one solution to attracting, interviewing, and then hiring suitable candidates.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"